Level 3 Diploma in Financial Studies (DipFS) / 8551 / 4

Transcription

1 Level 3 Diploma in Financial Studies (DipFS) / 8551 / 4 Qualification Specification Page 1 of 40

2 CONTENTS Page 1. Accreditation information 3 2. Aims of the DipFS 4 3. Learning outcomes for the DipFS 5 4. Objectives of the DipFS 6 5. Structure of the DipFS 7 6. Entry requirements 7 7. Apprenticeship framework technical certificate 8 8. Methods of study 8 9. Assessment methodology of the DipFS Grading Assessment resits Learning resources Unit 1 specification 10 Unit 1 learning outcomes / assessment criteria 11 Unit 1 assessment methodology 12 Unit 1 QCF Level 3 descriptor comparison with DipFS assessment criteria 13 Unit 1 syllabus Unit 2 specification 17 Unit 2 learning outcomes / assessment criteria 18 Unit 2 assessment methodology 20 Unit 2 QCF Level 3 descriptor comparison with DipFS assessment criteria 21 Unit 2 syllabus Unit 3 specification 25 Unit 3 learning outcomes / assessment criteria 26 Unit 3 assessment methodology 27 Unit 3 QCF Level 3 descriptor comparison with DipFS assessment criteria 28 Unit 3 syllabus Unit 4 specification 32 Unit 4 learning outcomes / assessment criteria 33 Unit 4 assessment methodology 34 Unit 4 QCF Level 3 descriptor comparison with DipFS assessment criteria 35 Unit 4 syllabus 36 Page 2 of 40

3 1. Accreditation information Qualification title ifs Level 3 Diploma in Financial Studies (DipFS) Ofqual qualification number 600 / 8551 / 4 Qualification level 3 European Qualifications Framework (EQF) level 4 Regulation start date 1 September 2013 Operational start date 1 September 2013 Offered in Assessment available in English Assessment available in Welsh Assessment available in Irish Sector subject area Purpose Sub-purpose England, Wales and Northern Ireland Yes No No 15.1 Accounting and Finance B. Prepare for further learning or training and / or develop knowledge and / or skills in a subject area B2. Develop knowledge and / or skills in a subject area Total credits 60 Minimum credits at / above level 60 Guided learning hours 360 Overall grading type Assessment methods Qualification description A* E Multiple-choice examination, written examination The Diploma in Financial Studies consists of four mandatory units. A total credit value of 60 must be obtained for achievement of the qualification. Age ranges 16 18; 19+ Page 3 of 40

4 1.1 Table 1 QCF Level 3 level descriptors DESCRIPTION SUMMARY KNOWLEDGE AND UNDERSTANDING APPLICATION AND ACTION AUTONOMY AND ACCOUNTABILITY Achievement at Level 3 reflects the ability to identify and use relevant understanding, methods and skills to complete tasks and address problems that, while well defined, have a measure of complexity. It includes taking responsibility for initiating and completing tasks and procedures as well as exercising autonomy and judgement within limited parameters. It also reflects awareness of different perspectives or approaches within an area of study or work. Use factual, procedural and theoretical understanding to complete tasks and address problems that, while well defined, may be complex and nonroutine. Interpret and evaluate relevant information and ideas. Be aware of the nature of the area of study or work. Have awareness of different perspectives or approaches within the area of study or work. Address problems that, while well defined, may be complex and nonroutine. Identify, select and use appropriate skills, methods and procedures. Use appropriate investigation to inform actions. Review how effective methods and actions have been. Take responsibility for initiating and completing tasks and procedures, including, where relevant, responsibility for supervising or guiding others. Exercise autonomy and judgement within limited parameters. 2. Aims of the DipFS Declared purpose As an Applied General qualification, the Diploma in Financial Studies (DipFS) explores in depth the key concepts of financial capability and how they are applied to achieve longer-term financial sustainability. It develops and extends the knowledge and skills required to engage young people and to help them make informed financial decisions through an understanding of the risks and challenges involved in personal finance and the importance of effective planning. Developing core skills of critical analysis and evaluation, synthesis and written communication, it provides strong foundations for further study in business and finance-related disciplines, as well as a wide range of other fields, in addition to enhancing future career prospects. 2.1 The aims of the DipFS are to: i. provide students with a challenging qualification covering the core disciplines of financial capability and financial sustainability as they impact on the individual, financial services sector and the government; Page 4 of 40

5 ii. enable students to focus upon and examine issues relating to the impact of financial sustainability; iii. enable students to apply specialised, current knowledge of financial capability, financial sustainability, and finance concepts and theories; iv. enable students to make informed and confident decisions regarding their finances; v. provide students with the tools and terminology necessary to analyse the financial services products and financial sustainability considerations that support their financial needs, wants and aspirations; vi. encourage students to reflect on and engage in academic debate on issues relevant to financial capability and financial sustainability; vii. provide students with the opportunity to evaluate the impact of the changing regulatory and operating environment, technical changes, and risk on issues relating to financial capability and financial sustainability; viii. support students understanding of ethics and financial sustainability, and wider environmental issues as applicable to financial capability and financial sustainability; ix. enable students to explore the relationship between individuals and financial services products and how the range of economic, legal, regulatory and social factors affect financial capability and financial sustainability; x. familiarise students with the links between theory and practice; xi. enable students to explore recent developments in financial services products and how these are marketed; xii. help students to become responsible borrowers, sensible savers, and have an appreciation of the need for financial planning throughout their life; xiii. enhance students ability to become autonomous and self-directed and enable them to manage their own professional development; and xiv. provide opportunities for students to develop the necessary skills and competencies to move on to further study or employment. 3. Learning outcomes for the DipFS 3.1 Knowledge and understanding elements of the DipFS will provide students with the ability to critically analyse: i. the environment of financial capability with a focus on financial sustainability and the impact this has on their needs and aspirations; ii. how a variety of financial products and concepts may be applied to their financial footprint; iii. the current technical language, tools, methods and practices of financial capability and financial sustainability to enable effective financial decision-making; iv. contemporary theories and concepts relating to financial capability and financial sustainability, and their practical application; and Page 5 of 40

6 v. financial capability and financial sustainability, and the need to respond to the constantly changing economic, legal and regulatory environment, with focus on the impact of global events. 3.2 Subject-specific practical / professional elements of the DipFS will provide students with the skills to: i. use appropriate tools (software and IT eg Excel) and methods and conduct meaningful research through the creation, extraction and analysis of data and information from financial sources; ii. analyse financial data and information, financial services products and services and reflect upon their desirability and effectiveness; iii. understand the concept of financial sustainability and ethics; and iv. understand how financial products respond to the drivers and implications of changes in the wider environment and how these changes affect financial decision-making. 3.3 Intellectual skills developed by the DipFS will provide students with the ability to: i. analyse data and information from different financial sources and environments; ii. apply higher-level cognitive skills of reflective practice, including analysis, synthesis and evaluation; iii. demonstrate numeracy skills, including the ability to manipulate financial and other numerical data; iv. utilise problem-solving and decision-making skills; v. critically evaluate data and information; and vi. understand the interrelationships between the various subject disciplines and assimilate these coherently to provide effective solutions. 3.4 Transferable skills and personal qualities developed by the DipFS will provide students with the ability to: i. use / extract appropriate data and information from a range of sources; ii. critically / evaluate and articulate concepts and arguments with clarity, conciseness and rigour using appropriate data and information; iii. learn independently and enhance skills of self-reflection, criticality and self-managed study; iv. structure and communicate ideas logically and coherently; and v. use appropriate communication and information technology skills. 4. Objectives of the DipFS 4.1 On completion of the DipFS qualification, students will be able to: i. understand the concept of money in all its forms, and how its value is subject to time and circumstance; Page 6 of 40

7 ii. appreciate the benefits that can be derived from financial services products, and how these can contribute to achieving their personal aspirations; iii. develop an awareness of risk and reward, and the obligations associated with different financial solutions; iv. understand the scope of the financial services industry and the bodies that regulate it; v. explain and demonstrate understanding of the monetary and financial system; vi. appreciate how different external factors impact upon the individual directly and indirectly; vii. compare and contrast a range of financial solutions and draw reasoned, informed and sound financial judgements in particular contexts; viii. develop key financial capability skills that are relevant to everyday life / situations; ix. become a more confident, informed and responsible financial services consumer; x. take ownership of the planning of their own personal finances; xi. understand how external factors and the financial services industry impact on individuals personal financial management; xii. understand the importance of financial sustainability for individuals, the financial services sector and the government; xiii. recognise the impact of change on their financial footprint; xiv. understand the market of financial services products and how they are marketed; and xv. recognise the impact of global events, developments and ethical considerations upon the financial services sector and the individual. 4.2 As well as developing knowledge, the DipFS assists in developing the ability to: i. analyse and evaluate data and information; ii. develop core personal skills including communication (spelling, punctuation and grammar), numeracy and IT; iii. formulate appropriate responses to resolve defined problems; iv. convey data and information clearly, concisely and accurately; v. structure information, options and recommendations in a clear and logical order; vi. explain and fully justify recommendations in appropriate language; vii. develop skills in examination technique; viii. apply and build on previous learning and experience; and ix. develop critical thinking and critical evaluation and reflexivity. 5. Structure of the DipFS 5.1 DipFS is made up of four mandatory units which need to be successfully completed in order for the student to achieve the certificate: i. Unit 1: Financial Capability for the Immediate and Short Term (15 credits) ii. Unit 2: Financial Capability for the Medium and Long Term (15 credits) iii. Unit 3: Sustainability of an Individual s Finances (15 credits) iv. Unit 4: Sustainability of the Financial Services System (15 credits) Page 7 of 40

8 6. Entry requirements 6.1 There are no specified entry requirements; however, individuals need to be satisfied of their ability to study in English at Level DipFS is equivalent to a GCE A level qualification. 7. Apprenticeship framework technical certificate 7.1 DipFS is also recognised as a Technical Certificate and forms part of the Financial Skills Partnership (FSP) Apprenticeship Framework (Level 3, Providing Financial Services). 8. Methods of study 8.1 DipFS may be studied full or part-time via schools, colleges and other learning institutions. 8.2 It offers a flexible and integrated approach to learning and assessment. 8.3 Materials and additional information are available via my ifslearning. 9. Assessment methodology of the DipFS 9.1 All four units will be assessed by e-test / written paper made up of the following components: i. multiple-choice questions (Part A): 35 x 1 mark for each correct answer (total marks: 35 / 100); ii. pre-release case study requiring essay responses to 5 questions (Part B) (total marks: 60 / 100); and iii. spelling, punctuation and grammar to be marked through the essay responses (total mark 5 / 100). 9.2 A total of 400 marks are available from all four units comprising 100 marks per unit. The pass mark for each component of the unit assessment will be 40%. 10. Grading 10.1 Units will be graded with pass / fail only The overall qualification will be graded A* E. To achieve a pass, students must achieve a pass of 40% in all four units, in each component of the examination. Page 8 of 40

9 11. Assessment resits 11.1 Students are allowed one resit attempt for each component of a unit in accordance with the published qualification regulations. 12. Learning resources 12.1 Students will be provided with the following learning support materials: i. online access via my ifslearning to learning materials, including activities to help consolidate learning, and to ifs KnowledgeBank (virtual library); ii. unit syllabuses; iii. revision guide; iv. specimen papers Additionally, teaching / workshop guidance and support materials are available to teachers. Page 9 of 40

10 13.1 Unit 1 specification Unit title Unit 1: Financial Capability for the Immediate and Short Term (FCIS) Ofqual unit reference number T / 504 / 8100 Unit level 3 Unit credit value 15 Unit aims i. This unit highlights the importance of financial capability in meeting immediate and short-term financial needs. ii. It introduces students to the financial services industry by focusing on the interaction between money, personal finance and the financial services market place. iii. Students will gain an understanding of cash flow to meet immediate and short-term financial needs through balancing income against expenditure. iv. Students will gain an appreciation of the differentiation of financial products for savings and the key features of interest and charges on borrowing. v. Students will understand their key responsibilities in terms of earning, income tax, National Insurance and other personal financial considerations depending on the stage of their life cycle. vi. Students will gain an appreciation of why money is important through focusing on what money is; attitudes to it; and how it can affect life choices. Page 10 of 40

11 13.2 Unit 1 learning outcomes / assessment criteria Learning outcome (LO) The learner when awarded credit for this unit will: 1. Understand the value and purposes of money. 2. Understand the concept of the personal life cycle and the impact of external influences. 3. Understand the features of different types of financial services product. 4. Understand the role of key stakeholders in financial services provision. 5. Understand the characteristics of financial products for managing money. 6. Understand how to manage finance in the short term and the impact of poor decision-making and unforeseen circumstances. Assessment criteria (AC) Assessment of the LOs will require a learner to demonstrate that they can: 1.1 Define the purposes of money. 1.2 Outline the key features of money. 1.3 Critically compare different methods of transferring money. 2.1 Distinguish between the key stages of the personal life cycle. 2.2 Distinguish between the external influences on key stages of the personal life cycle. 2.3 Analyse the effect of external influences on key stages of the personal life cycle. 3.1 Differentiate between financial services products for savings. 3.2 Identify the key features of basic savings accounts. 3.3 Outline the key features of the financial services products for borrowing. 3.4 Identify the key features of costs of borrowing. 4.1 Differentiate between different types of financial services provider. 4.2 Critically compare the communication methods used by financial services providers. 4.3 Explain the role of financial services regulatory bodies. 5.1 Identify the key features of different types of bank account. 5.2 Distinguish between different types of card payment. 6.1 Interpret a cash flow forecast for short-term financing. 6.2 Provide solutions for dealing with unforeseen events that impact on current finances. 6.3 Explain the potential consequences for an individual of living beyond their means. 7. Understand the impact of legislation and regulations on earnings and the key features of income tax and National Insurance. 8. Understand an individual s financial needs through the various life stages. 7.1 Interpret legislative, regulatory and organisational requirements and procedures relevant to earnings. 7.2 Apply the key features of income tax and National Insurance 8.1 Evaluate lifelong financial planning through the various life stages. Page 11 of 40

12 13.3 Unit 1 assessment methodology i. The assessment of Unit 1 will have two components: a. Part A 35 multiple-choice questions. This component of the examination is to be completed in forty five minutes. This component of the examination is worth 35 marks. b. Part B a pre-release case study essay. Prior to the examination, students will be given data and information to consider. The examination paper will also provide additional data and information that relates to the pre-release case study. Students will then be asked questions specifically about the case study (covering both pre-release and new data and information). This component of the examination is to be completed in one hour and forty five minutes. There will also be additional questions, which may not be related to the case study, to make sure all learning outcomes within the unit are covered. This component of the examination is worth 65 marks. Part B will also assess spelling, punctuation and grammar (SPAG) which will contribute 5 marks to the overall mark of 65. c. The examination will be worth a total of 100 marks. ii. iii. Part B, which contains the pre-release case study essay, will consist of a scenario and research information. The question (s) will be designed to cover the assessment criteria of the learning outcomes. SPAG is assessed via students responses to the essay questions in part B. Students will be told on the examination paper which questions will be assessed for SPAG. Page 12 of 40

13 13.4 Unit 1 QCF Level 3 descriptor comparison with DipFS assessment criteria Title: Unit 1: Financial Capability for the Immediate and Short Term (CIS) QCF level descriptor Unit assessment criteria focus In this unit, individuals will: KU 1: Develop knowledge and understanding of legislative, regulatory and procedural information 1.1 / 1.2 plus characteristics of financial services 2.1 / 2.2 components to facilitate problem-solving of non- Knowledge and 3.1 / 3.2 / 3.3 / 3.4 routine and complex tasks. Understanding 4.1 / 4.3 KU 2: Use information and ideas to evaluate situations (KU) 5.1 / 5.2 and propose financial solutions for self. 6.3 KU 3: Demonstrate an understanding of the perspectives 7.1 / 7.2 and approaches of key stakeholders in financial services provision and the impact of wants, needs and aspirations on individuals. 1.3 AA 1: Apply knowledge and understanding in providing 2.1 / 2.2 financial solutions to routine and non-routine 8.1 complex tasks. Application and 4.1 AA 2: Evaluate, distinguish between and compare key Action (AA) 5.1 / 5.2 features of financial services and summarise 6.2 findings. 7.1 / 7.2 Autonomy and Accountability (AuA) AuA 1: Make financial judgements and recommendations based on collected and established information to manage own finances in making financial decisions. AuA 2: Justify reasons for recommendations and judgements. Page 13 of 40

14 13.5 Unit 1 syllabus UNIT 1 SYLLABUS LOs / ACs LO1: Understand the value and purposes of money. AC1.1: Define the purposes of money. What is money Purposes of money AC1.2: Outline the key features of money. Concept of purchasing power Value and the effect of time Types of money AC1.3: Critically compare different methods of transferring money. How money is transferred Benefits / limitations as a means of exchange Credit cards, debit cards, internet payments, etc LO2: Understand the concept of the personal life cycle and the impact of external influences. AC2.1: Distinguish between the key stages of the personal life cycle. Different stages within the personal life cycle Nature of the personal life cycle How the life cycle may vary depending on personal circumstances AC2.2: Distinguish between the external influences on key stages of the personal life cycle. Aspects of safety, risks, status within the life cycle AC2.3: Analyse the effect of external influences on key stages of the personal life cycle. Socio-economic trends and how these affect life cycle stages LO3: Understand the features of different types of financial services product. AC3.1: Differentiate between financial services products for savings. Key features of financial services products for savings AC3.2: Identify the key features of basic savings accounts. Key feature of basic savings accounts AC3.3: Outline the key features of the financial service products for borrowing. Key features of different types of financial services product for borrowing AC3.4: Identify the key features of costs of borrowing. Key features of costs of borrowing Page 14 of 40

15 LO4: Understand the role of key stakeholders in financial services provision. AC4.1: Differentiate between different types of financial services provider. Different types of financial services provider AC4.2: Critically compare the communication methods used by financial services providers. Different communication methods used by providers Advantages and disadvantages of different methods used by financial services providers, eg internet AC4.3: Explain the role of financial services regulatory bodies. The role of the Financial Conduct Authority (FCA) The role and limitations of the Financial Ombudsman Service The role and limitations of the Financial Services Compensation Scheme The role and limitations of the Office of Fair Trading LO5: Understand the characteristics of financial products for managing money. AC5.1: Identify the key features of different types of bank account. Different types of bank account Access to accounts, eg ATM, savings books, cash cards, internet, mobile phone Account features, eg bank charges AC5.2: Distinguish between different types of card payment. Types of card payment Payment features, eg transaction period / speed LO6: Understand how to manage finances in the short term and the impact of poor decision-making and unforeseen circumstances. AC6.1: Interpret a cash flow forecast for short-term financing. The need for short-term financing and cash flow How to live within your means by balancing your income against expenditure The cost of living in the UK today The need to manage money within the constraints of income and mandatory expenditure Creditworthiness Budgets AC6.2: Provide solutions for dealing with unforeseen events that impact on current finances. Managing risk through mandatory and voluntary general insurance, eg car, pet, travel Dealing with unforeseen events that impact on current finances Saving surplus funds for future needs Getting into debt and how to resolve the situation Good and bad debt Debt organisations Page 15 of 40

16 AC6.3: Explain the potential consequences for an individual of living beyond their means. The consequences of expenditure being greater than income The implications of entering financial contracts Debt management LO7: Understand the impact of legislation and regulations on earnings and the key features of income tax and National Insurance. AC7.1: Interpret legislative, regulatory and organisational requirements and procedures relevant to earnings. Minimum wage rates Maximum working hours for different age groups AC7.2: Apply the key features of income tax and National Insurance. An individual s responsibility in terms of taxation and National Insurance Key components of a payslip PAYE, tax codes, P45 and P60s Filling in an income tax return LO8: Understand an individual s financial needs through the various life stages. AC8.1 Evaluate lifelong financial planning through the various life stages How financial decision-making changes depending on the transition from one life stage to another life stage Study skills and exam practice Exam techniques Evaluation and analysis skills Importance of spelling, punctuation and grammar Page 16 of 40

17 14.1 Unit 2 specification Unit title Unit 2: Financial Capability for the Medium and Long Term (FCML) Ofqual unit reference number D / 504 / 8110 Unit level 3 Unit credit value 15 Unit aims i. This unit highlights the importance of planning for medium- and long-term financial needs, with particular reference to the importance of the need to budget for future aspirations and life events. ii. It introduces students to the features of risks and reward in managing personal finances. iii. Students will consider the changing priorities attached to needs, wants and aspirations as individuals progress through the personal life cycle, and the role of financial services in assisting lifelong financial planning. iv. Students will gain an understanding of the personal approaches that individuals take towards risk and rewards and the impact of foreseen and unforeseen influences on financial budgeting. v. Students will understand the features of different types of financial services products, how to make informed choices about these financial services products, and when, where and how they can get financial help and advice. vi. Students will gain an appreciation of the differentiation of financial products for investment, borrowing, and the charges attached to them. vii. Students will gain insight into Islamic banking. viii. Students will consider the validity of data and information as a means of assisting in the financial decision-making process. Page 17 of 40

18 14.2 Unit 2 learning outcomes / assessment criteria Learning outcome The learner when awarded credit for this unit will: 1. Understand the influence of values, needs, wants and aspirations on financial decision-making. 2. Understand how to budget for future aspirations and life events. 3. Understand how to plan for medium- and long-term financial needs. 4. Understand the features of risks and rewards in managing personal finances. 5. Understand the features of different types of financial services product. Assessment criteria Assessment of the LOs will require a learner to demonstrate that they can: 1.1 Identify the key features of needs, wants and aspirations. 1.2 Identify how needs, wants and aspirations can be satisfied through informed financial decision-making. 1.3 Identify how personal values affect an individual s thoughts, feelings, behaviour and decision-making. 2.1 Develop a budgetary plan to achieve a medium- or long-term aspiration. 2.2 Explain the importance of financial budgets. 2.3 Identify the key steps for financial planning. 2.4 Explain the need for flexibility in a financial plan. 3.1 Explain the importance of constant monitoring of financial planning. 3.2 Explain the significance of financial budgeting in fulfilling needs and aspirations through the life cycle. 3.3 Explain how foreseen and unforeseen influences have an impact on financial budgeting. 3.4 Analyse the consequences of an individual s financial footprint on future financing. 4.1 Explain the relationship between risk and reward. 4.2 Analyse the impact of different attitudes to risk on financial planning. 4.3 Explain risk and reward in terms of impact, severity and probability. 5.1 Differentiate between financial services products for investment. 5.2 Identify the key features of savings accounts and the impact of taxation. 5.3 Differentiate between the financial service products for borrowing. 5.4 Identify the key features of interest and charges on borrowing. 5.5 Explain the key features of Islamic banking. Page 18 of 40

19 6. Understand how to make informed financial choices in the selection of financial services products. 7. Understand when, where and how an individual can get financial help and advice. 6.1 Evaluate a situation and make justified recommendations between a number of financial solutions. 6.2 Evaluate and critically compare how a solution matches the individual s circumstances and attitudes. 6.3 Evaluate the impact of external factors upon the potential of a solution. 7.1 Analyse the validity of data and information sources in proposing financial decisions and plans. 7.2 Compare and contrast the different types of advice available when choosing financial services products. 7.3 Identify the key features of advice and information on financial services products and services. 7.4 Compare and contrast the advantages and disadvantages of researching financial services products and services on the internet against other channels of information. Page 19 of 40

20 14.3 Unit 2 assessment methodology i. The assessment of Unit 2 will have two components: a. Part A 35 multiple-choice questions. This component of the examination is to be completed in forty five minutes. This component of the examination is worth 35 marks. b. Part B a pre-release case study essay. Prior to the examination, students will be given data and information to consider. The examination paper will also provide additional data and information that relates to the pre-release case study. Students will then be asked questions specifically about the case study (covering both pre-release and new data and information). This component of the examination is to be completed in one hour and forty five minutes. There will also be additional questions, which may not be related to the case study, to make sure all learning outcomes within the unit are covered. Part B will also assess spelling, punctuation and grammar (SPAG), which will contribute 5 marks to the overall mark of 65. c. The examination will be worth a total of 100 marks. ii. iii. Part B, which contains the pre-release case study essay will consist of a scenario and research information. The question (s) will be designed to cover the assessment criteria of the learning outcomes. SPAG is assessed via students responses to the essay questions in part B. Students will be told on the examination paper which questions will be assessed for SPAG. Page 20 of 40

21 14.4 Unit 2 QCF Level 3 descriptor comparison with DipFS assessment criteria Title: Unit 2: Financial Capability for the Medium and Long Term (CML) QCF level descriptor Unit assessment criteria focus In this unit, individuals will: Knowledge and Understanding (KU) 2.1 / / 3.2 / 3.3 / / / 5.3 / 5.5 KU1: KU2: Develop knowledge and understanding of the significance of long-term budgeting and the key features of products and services for borrowing and investment. Make informed decisions in financial planning for the future. Application and Action (AA) Autonomy and Accountability (AuA) 2.2 / / / / 7.2 / 7.4 AA1: Apply knowledge and understanding to assess financial risk and reward in planning and proposing financial solutions for the future. AA2: Evaluate, distinguish between and compare key features of financial services products for borrowing and investment and summarise findings. AA3: Analyse the validity of data and information sources in making selections. AuA1: Provide financial solutions and recommendations for others based on collected and established information, taking into consideration an individual s circumstances and attitude to risk. AuA2: Justify reasons for recommendations and solutions. Page 21 of 40

22 14.5 Unit 2 syllabus UNIT 2 SYLLABUS LOs / ACs LO1: Understand the influence of values, needs, wants and aspirations on financial decision-making. AC1.1: Identify the key features of needs, wants and aspirations. Differences between needs, wants and aspirations How an individual s needs, wants and aspirations change over their life cycle AC1.2: Identify how needs, wants and aspirations can be satisfied through informed financial decision-making. How needs, wants or aspirations will need to be satisfied at each stage Internal values and external factors, eg marketing / advertising Satisfaction through financial services solutions AC 1.3: Identify how personal values affect an individual s thoughts, feelings, behaviour and decision-making. How personal values and the value system affect an individual s thoughts, feelings, behaviour and decision-making The affordability, implications and responsibilities associated with different solutions How individuals may have to prioritise their wants, needs and aspirations LO2: Understand how to budget for future aspirations and life events. AC2.1: Develop a budgetary plan to achieve a medium- or long-term aspiration. Budgeting as part of a financial plan to achieve particular medium- and / or long-term aspirations and as they are impacted by life events, eg buying a house or car AC2.2: Explain the importance of financial budgets. The purpose of budgeting as part of a financial plan to improve the likelihood of achieving particular objectives, eg focusing on priorities, avoiding getting into financial difficulties The consequences of failing to budget, eg suffering financial difficulties AC2.3: Identify the key steps for financial planning. The key steps for financial planning AC2.4: Explain the need for flexibility in a financial plan. The need to develop a personal financial plan that is flexible enough to deal with unforeseen events and changes in personal circumstances LO3: Understand how to plan for medium- and long-term financial needs. AC3.1: Explain the importance of constant monitoring of financial planning. The need for medium- and long-term planning AC3.2: Explain the significance of financial budgeting in achieving needs and aspirations through the life cycle. The significance of financial budgeting within a life cycle Page 22 of 40

23 AC3.3: Explain how foreseen and unforeseen influences have an impact on financial budgeting. The foreseen and unforeseen events likely to influence financial decisions in the future AC3.4: Analyse the consequences of an individual s financial footprint on future financing. The consequences of poor financial choices, bad debt and the financial footprint AC4: Understand the features of risks and rewards in managing personal finances. AC4.1: Explain the relationship between risk and reward. The relationship between the level of risk and the prospect of reward AC4.2: Analyse the impact of different attitudes to risk on financial planning. How attitudes to risk affect personal financial planning, eg very cautious (very low risk) AC4.3: Explain risk and reward in terms of impact, severity and probability. The assessment of risks and reward in terms of impact, severity and probability LO5: Understand the features of different types of financial services product. AC5.1: Differentiate between financial services products for investment. Key features of financial services products for investing Different types of financial services product for medium- and long-term investing: savings, investments, interest rates and dividends, and capital gains tax AC5.2: Identify the key features of savings accounts and the impact of taxation. Key feature of savings accounts AC5.3: Differentiate between the financial services products for borrowing. Different types of financial services product for medium- and long-term borrowing: personal loans, hire purchase, credit cards, mortgages, etc Key features of different types of financial services product for borrowing Minimising the risk of borrowing through insurance AC5.4: Identify the key features of interest and charges on borrowing. Key features of financial services products for borrowing Key features of charges AC5.5: Explain the key features of Islamic banking. Key features of Islamic banking Islamic financial transaction terminology LO6: Understand how to make informed financial choices in the selection of financial services products. AC6.1: Evaluate a situation and make justified recommendations between a number of financial solutions. How solutions match an individual s circumstances Attitudes of the individual and the potential impact of external factors upon the viability of financial services solutions AC6.2: Evaluate and critically compare how a solution matches the individual s circumstances and attitudes. The main product mixes available The relationships between products, such as with joint demand and competitive demand Product mixes can exist both within each product group and across product groups Page 23 of 40

24 AC6.3: Evaluate the impact of external factors upon the potential of a solution. The factors that determine the product mix chosen LO7: Understand when, where and how an individual can get financial help and advice. AC7.1: Analyse the validity of data and information sources in proposing financial decisions and plans. How to access and the key features of advice and information on products and services Use of data and information available to support key financial decision-making Define ethics Ethical considerations Define sustainability Sustainability considerations AC7.2: Compare and contrast the different types of advice available when choosing financial products. The advantages and disadvantages for the consumer of different types of advice available when choosing financial services products AC7.3: Identify the key features of advice and information on financial services products and services. Key features of advice and information on products and services AC7.4: Compare and contrast the advantages and disadvantages of researching financial products and services on the internet against other channels of information. The advantages and disadvantages of researching financial services products on the internet compared with other channels Study skills and exam practice Exam techniques Evaluation and analysis skills Importance of spelling, punctuation and grammar Page 24 of 40

25 15.1 Unit 3 specification Unit title Unit 3: Sustainability of an Individual s Finances (SIF) Ofqual unit reference number L / 504 / 8166 Unit level 3 Unit credit value 15 Unit aims i. This unit highlights the importance of financial sustainability for the individual, to enable the development of skills to make sure that an individual s financial capability is sustained over a period of time, taking into consideration the personal and external factors that lead to change. ii. Students will understand the key external financial factors that influence financial performance and the impact that this has on them as a consumer. iii. Students will understand the importance of and be able to monitor budgets, and adapt financial plans to meet changing circumstances in order to maintain financial sustainability and avoid-long term debt. iv. Students will gain an understanding of debt and borrowing. v. Students will gain an understanding of the impact of global events, developments and ethical considerations that impact on the financial services industry and the consumer. Page 25 of 40

26 15.2 Unit 3 learning outcomes / assessment criteria Learning outcome The learner when awarded credit for this unit will: 1. Understand the importance of financial sustainability for individuals and the measures in place to support an individual s sustainability. 2. Understand the key external financial factors influencing financial performance and the resulting effect on the consumer. 3. Understand the need to monitor personal budgets and adapt plans in response to changes in circumstances. 4. Understand the personal implications of debt and borrowing solutions for individuals in different circumstances and from different cultures. 5. Understand the Impact of global events, developments and ethical considerations upon the financial services industry and ultimately the consumer. 6. Understand the impact on the consumer of changes that have occurred in the financial services industry in recent years. Assessment criteria Assessment of the LOs will require a learner to demonstrate that they can: 1.1 Explain the importance of financial sustainability for individuals. 1.2 Identify the measures taken by financial services providers to support an individual s financial sustainability. 1.3 Explain how the state benefit system can support an individual s sustainability. 2.1 Analyse how external financial factors can affect personal decision-making. 2.2 Analyse data sources in order to assess the impact of external financial factors when making financial decisions and plans. 3.1 Explain how to monitor the variances of a personal budget. 3.2 Identify how personal financial plans can be adapted to respond to changes in circumstances. 3.3 Identify key sources of financial help available to individuals to cope with unforeseen changes to personal circumstances. 4.1 Explain the personal implications of debt for individuals in different circumstances and from different cultures. 4.2 Compare and contrast different solutions for individuals in debt. 5.1 Evaluate the impact of global events, developments and ethical considerations upon the financial services industry. 5.2 Analyse how global events, developments and ethical considerations impact on the financial services consumer. 6.1 Analyse the impact on the consumer of changes to the financial services industry. Page 26 of 40

27 15.3 Unit 3 assessment methodology i. The assessment of Unit 3 will have two components: a. Part A 35 multiple-choice questions. This component of the examination is to be completed in one hour. This component of the examination is worth 35 marks. b. Part B a pre-release case study essay. Prior to the examination, students will be given data and information to consider. The examination paper will also provide additional data and information that relates to the pre-release case study. Students will then be asked questions specifically about the case study (covering both pre-release and new data and information). This component of the examination is to be completed in two hours. There will also be additional questions, which may not be related to the case study, to make sure all learning outcomes within the unit are covered. Part B will also assess spelling, punctuation and grammar (SPAG), which will contribute 5 marks to the overall mark of 65. c. The examination will be worth a total of 100 marks. ii. iii. Part B, which contains the pre-release case study essay will consist of a scenario and research information. The question (s) will be designed to cover the assessment criteria of the learning outcomes. SPAG is assessed via students responses to the essay questions in part B. Students will be told on the examination paper which questions will be assessed for SPAG. Page 27 of 40

28 15.4 Unit 3 QCF Level 3 descriptor comparison with DipFS assessment criteria Title: Unit 3: Sustainability of an Individual s Finances (SIF) QCF level descriptor Knowledge and Understanding (KU) Application and Action (AA) Autonomy and Accountability (AuA) Unit assessment criteria focus 1.1 / 1.2 / / / 3.2 / / / / / / / In this unit, individuals will: KU 1: Develop knowledge and understanding of the key factors that impact on financial sustainability including the influence of external factors beyond the control of the individual. KU 2: Use this information to monitor variances in financial budgets and plans and adapt plans accordingly. KU 3: Demonstrate an understanding of the key sources of help and advice to manage unforeseen circumstances in financial planning. AA 1: Apply knowledge and understanding to provide financial solutions to non-routine and complex budgetary tasks. AA 2: Compare and contrast solutions and apply these to individuals in different circumstances and from different cultures. AuA 1: Make judgement of the potential effectiveness of marketing materials based on a range of materials and approaches used by financial services providers to inform self and guide others in financial decisions. Page 28 of 40

29 15.5 Unit 3 syllabus UNIT 3 SYLLABUS LOs / ACs LO1: Understand the importance of financial sustainability for individuals and the measures in place to support an individual s sustainability. AC1.1: Explain the importance of financial sustainability for individuals. The importance of sustainability AC1.2: Identify the measures taken by financial services providers to support an individual s financial sustainability. How providers can support an individual s sustainability AC1.3: Explain how the state benefit system can support an individual s sustainability. How the benefit system can support an individual s sustainability L02: Understand the key external financial factors influencing financial performance and the resulting effect on the consumer. AC2.1: Analyse how external financial factors can affect personal decision-making. Use PESTEL analysis to analyse an individual s financial situation AC2.2: Analyse data sources in order to assess the impact of external financial factors when making financial decisions and plans. The key external factors and how they affect personal decision-making Implications of change Changes in providers products and market strategy International impact LO3: Understand the need to monitor personal budgets and adapt plans in response to changes in circumstances. AC3.1: Explain how to monitor the variances of a personal budget. The need to monitor the progress of a personal financial plan towards its objectives AC3.2: Identify how personal financial plans can be adapted to respond to changes in circumstances. The importance of keeping accurate records The importance of monitoring the progress of a financial plan on a regular basis The link between the regularity of the plan and the time period it covers The importance of regular monitoring so that the financial situation is continually being assessed and reassessed Methods of monitoring The need to be able to adapt a financial plan in response to changes in circumstances of the individual and wider family AC3.3: Identify key sources of financial help available to individuals to cope with unforeseen changes to personal circumstances. Getting help when things change for the individual and wider family, eg maternity pay Page 29 of 40

30 L04: Understand the personal implications of debt and borrowing solutions for individuals in different circumstances and from different cultures. AC4.1: Explain the personal implications of debt for individuals in different circumstances and from different cultures. The analysis of the personal implications of debt for individuals in different circumstances and from different cultures The costs of borrowing and the existence of debt Balancing the benefits and costs of debt Borrowing and financial footprints Attitudes to debt and changes in these attitudes The wider cultural, economic and social implications of debt AC4.2: Compare and contrast different solutions for individuals in debt. Appropriate borrowing solutions LO5: Understand the impact of global events, developments and ethical considerations upon the financial services industry and ultimately the consumer. AC5.1: Evaluate the impact of global events, developments and ethical considerations upon the financial services industry. Global issues, eg globalisation World / EU / UK economy Major world events / live issues Social change Cultural change Demographic change Externalities, ie effect of price / cost decisions on the wider society Trends AC5.2: Analyse how global events, developments and ethical considerations impact on the financial services consumer. Investment decisions Corporate social responsibility (CSR) Ethically branded organisations Ethically branded products Ethical operations Page 30 of 40

31 LO6: Understand the impact on the consumer of changes that have occurred in the financial services industry in recent years. AC6.1: Analyse the impact on the consumer of changes to the financial services industry. The impact of changes in the financial services industry on the consumer: providers and products Impact of technology Exam techniques Evaluation and analysis skills Importance of spelling, punctuation and grammar Page 31 of 40

32 16.1 Unit 4 specification Unit title Unit 4: Sustainability of the Financial Services System (SFS) Ofqual unit reference number R / 504 / 8167 Unit level 3 Unit credit value 15 Unit aims i. This unit explores the financial services system and looks at how financial services providers work and compete with one another, their priorities and responses to external influences in maintaining financial sustainability. ii. Students will gain an understanding of the importance of financial sustainability for financial services providers and systems. iii. Students will analyse the impact of marketing techniques employed by financial services providers and the impact of changes in the financial services market and the effect this has on consumers. iv. Students will gain an understanding of how financial services providers use marketing methods and segmentation, and approaches to attract, retain and satisfy their customers. Page 32 of 40